28 October 2014Oxford Hotel, Clark Freeport Zone

Pampanga

Philippine Rural Development

Project (PRDP)

What is the PRDP?

PRDP is a six-year program designed to establish the government platform for a modern, climate-smart and market-oriented agri-fishery sector.

PRDP will partner with the LGUs and the private sector in providing key infrastructure, facilities, technology, and information that will raise incomes, productivity, and competitiveness in the countryside.

Tools for Implementation

Value Chain Analysis (VCA) of priority commodities identified by the province/region consistent with the Agriculture and Fisheries Modernization Plan (AFMP)

LGU Commodity Investment Plan – a rolling plan of the LGU containing specific infrastructure and enterprise subprojects in support to development of the commodities

Business Development Plan (BDP) for Enterprise subprojects

PRDP Project Components

• Investments in AFMP Planning at the Local and National Levels (I-PLAN)

• Infrastructure Development (I-BUILD)

• Enterprise Development (I-REAP)

• Program Support (I-SUPPORT)

MRDP to PRDP

IGR I-PLANI-SUPPORT

Rural Infra (RI) I-BUILD

CFADNRM

I-REAP

MRDP APL14 Regions, 5 PLGUs, 32 MLGUs

US$ 27.5 million

MRDP APL26 Regions, 26 PLGUs, 225 LGUs

US$ 83.752 million

PRDP16 Regions, 80 PLGUs

US$ 500 million

Rural Infrastructure - Procuring entities are 4th

to 6th class participating MLGUs

- Fund managers are the PLGUs

- SP approval at SAC level

Rural Infrastructure - Procuring entities are

the 225 M/CLGUs as well as PLGUs

- Fund managers are the respective procuring entities

- SP approval at RPAB level

I BUILD- Procuring entities can

be P/C/MLGUs- Fund managers are the

respective procuring entities

- SP approval at RPAB level

CFAD- SP identification at the

community/MLGUs- SP approval at MSC level- Fund managers are the

MLGUs

CFAD- SP identification at the

community/MLGUs or CLGUs

- SP approval at MSC level- Fund managers are the

MLGUs or CLGUs

I REAP- SP identification at the

MLGUs or PLGUs or CLGUs along the value chain

- SP approval at RPAB level

- Fund managers are the PLGUs, CLGUs or MLGUs

Cost Estimates and Financing (Php million)

Component ODA GEF GOP -NG GOP-LGU Total %

Local Planning 586.00 57.40 146.50 - 789.90 2.90%

Infrastructure 14,830.01 - 1,853.75 1,853.75 18,537.51 67.40%

Enterprise 4,100.00 229.60 1,332.50 1,264.44 6,926.54 25.20%

Program Support 984.00 - 246.00 - 1,230.00 4.50%

Total Base Cost 20,500.01 287.00 3,578.75 3,118.2 27,483.95

Front-End-Fee 51.38 - - - 51.38

Total ProgramCost

20,551.39 287.00 3,578.75 3,118.19 27,535.33

Financier Share 75% 1% 13% 11% 100%

NG – LGU Cost Sharing (%)

Component

Loan GEF Grant

LP GOP LGU Grant GOP LGU

I BUILD 80 10 10 0 0 0

I REAP 60 20 20 80 0 20

NG – LGU Cost Sharing (Amount)

Component

Project Cost (PhP Million)

LP GOP LGU Total

Infrastructure(Farm to Market Road)

40.00 5.00 5.00 50.00

Illustrative Example

I BUILD Eligible subprojects

• Construction or rehabilitation of:

–Farm to market roads

–Single/Double lane bridge

–Communal irrigation system

–Potable water system

–Fishery related infrastructure

–Other infra (pre & post harvest facility, enterprise facility, etc.)

• Feasibility Study (EIRR of at least 15%)

• Detailed Engineering Design

• Philippine Bidding Documents (works, Dec 2010)

• Social and Environmental Safeguards – Environmental Management Plan

– Project Affected Persons Survey

– Land Acquisition & Resettlement Plan, if applicable

– Applicable DENR compliance (ECC, CNC, etc.)

– If project is within IP area (FPIC, etc.)

• Geotagged file (.kmz)

• Provincial Development Council Endorsement

I BUILD Documents

General Process Flow for I BUILD

LGU to prepare:

1. FS

2. DED

3. PBD

4. SES

5. Geotagging

6. PDC endorsement

RPCO and PSO (WB) to review

RPAB for approval

LGU to bid/ implement the

subproject

Review Thresholds for Mindanao

Office I-BUILD I-REAP

RPCO ≤ Php 10 million -

PSO ≤ US$ 1 million -

NPCO ≤ US$ 5 million ≤ Php 18.75 million

WB > US$ 5 million > Php 18.75 million

I-REAP Menu of Enterprises

Eligible subprojects

• Production and Productivity Enhancement

• Postharvest and processing facilities

• Marketing facilities

• Agri-fishery Business Development Services (ABDS) Facility Establishment

• Investments in value chain segments related to priority commodities that integrate producer groups and enterprises to achieve volume and quality required by a specific industrial/commercial market

• Investments in incubation facilities for food processing enterprise for commercial market

• Natural resources management Investments

NG – LGU Cost Sharing (I-REAP)Illustrative Example (case of Oriental Mindoro)

Fund Source

Enterprise Works

Business Plan Amount Amount

Cost sharing

Amount Cost

sharing

LP 4,670,112.21 60% 1,850,080.00 80% 6,520,192.21

GOP 1,556,704.07 20% 231,260.00 10% 1,787,964.07

LGU 1,556,704.07 20% 231,260.00 10% 1,787,964.07

Total 7,783,520.35 2,312,600.00 10,096,120.35

PG 1,945,880.09 20% 1,945,880.09

Total with PG 9,729,400.44 2,312,600.00 12,042,000.44

Calamansi… a growing industryEmerging industry• Indigenous to the Philippines• US$ 505,612 (P23.58M) annual export earnings• 75% of production comes from Oriental Mindoro

Various product uses• Food and non-food use• Medical/ therapeutical

Binding Constraints• Declining productivity • High postharvest losses• Low farmgate prices

1. Assist farmers to form clusters and enter into marketing contracts with buyers

2. Elevate from purely producers by organizing collectively with market outlets

3. Assist farmers to engage in assembling, transporting and processing

PRDP Interventions

MUNICIPAL BOUNDARIES FOR ORIENTAL MINDORO

NATIONAL ROADPRIMARY ROADSECONDARY ROAD

HIGHLY SUITABLE AREA SUITABLE AREA NOT SUITABLE

CALAMANSI PLANTATION

PUERTO GALERA

SAN TEODORO

BACO

CALAPAN CITY

PINAMALAYAN

GLORIA

BANSUD

BONGABONG

ROXAS

MANSALAY

BULALACAO

POLA

SOCORRO

VICTORIA

NAUJAN

`

CALAMANSI – PRDP PROJECTS (ORIENTAL MINDORO)

TOP 3 MUNICIPALITIES

POLA = 1,046 hectares15km FMR2.0 km distance from Provincial Highway20.8km distance from Nautical Highway

SOCORRO = 560 hectares8.5km FMR

VICTORIA = 4,662 hectares, 8.5km FMR0.88km distance from Nautical Highway

PROCESSING PLANTS

I-BUILD Component: Current Portfolio

Subproject Portfolio (By Cluster)

CAR 4 8 945.36 6%

Region 1 1 5 342.89 2%

Region 2 2 10 814.62 6%

Region 3 2 6 256.05 2%

9 29 2,358.92 16%

Region 4A 1 12 523.81 4%

Region 4B 3 15 393.97 3%

Region 5 1 11 717.18 5%

5 38 1,634.96 11%

Region 6 7 26 2,793.12 19%

Region 7 3 27 1,066.62 7%

Region 8 4 22 1,446.58 10%

14 75 5,306.32 36%

Region 9 3 20 673.79 5%

Region 10 4 45 1,326.74 9%

Region 11 5 30 740.43 5%

Region 12 5 49 966.80 7%

Region 13 4 44 759.38 5%

ARMM 5 31 914.02 6%

26 219 5,381.18 37%

54 361 14,681.37 100%TOTAL

Cost

(In Million

Pesos)

Sub-Total

Luzon B

Sub-Total

Visayas

Sub-Total

Mindanao

Cluster Region

No. of

Provinces (w/

subprojects)

No. of SPs

Luzon A

% Distribution

(By Cost)

Sub-Total

I-REAP Component: Enterprise Development Subprojects

Current Subproject Portfolio (By Cluster)

CAR 1 1 2.40 0%

Region 1 1 1 14.99 1%

Region 2 2 2 54.39 4%

Region 3 2 2 39.43 3%

6 6 111.21 9%

Region 4A 0%

Region 4B 1 1 12.04 1%

Region 5 1 1 14.31 1%

2 2 26.35 2%

Region 6 4 13 161.99 12%

Region 7 2 6 19.00 1%

Region 8 8 34 686.47 53%

14 53 867.47 67%

Region 9 2 2 91.70 7%

Region 10 2 2 26.30 2%

Region 11 1 1 53.60 4%

Region 12 2 2 69.10 5%

Region 13 1 1 26.70 2%

ARMM 1 1 25.00 2%

9 9 292.40 23%

31 70 1,297.43 100%

Distribution of Number and Cost of Enterprise Development Subprojects By

Region / Cluster as of August 11, 2014

Cluster Region

No. of

Provinces (w/

subprojects)

No. of SPs

Cost

(In Million

Pesos)

% Distribution

(By Cost)

Luzon A

Sub-Total

Luzon B

Sub-Total

Sub-Total

Mindanao

Sub-Total

TOTAL

Visayas

Philippine Rural Development Program

visit us atwww.daprdp.net

Thank you

Enabling communities…. Expanding opportunities